Did you know that interest rates are at record lows as we approach the end of 2019?  At this time last year the entire (2018) the only thing analysts and economists could talk about was how interest rates would be be climbing over 5% for a 30 year fixed mortgage by the start of the year. 

What ended up happening?  Interest rates fell and they fell hard.  That caused home prices to continue upward.  Year to date (2019) home values have gone up approximately 7.5% in Downey and surrounding areas which is consistent with what has happened in past years.  Year over year, for the past 10 years home values in our local market have gone up a minimum of 7%-8%. 

Yes it’s true, eventually that kind of appreciation has to stop.  It’s not very healthy for the market to increase at those rates.  So yes, eventually (we’re not sure when) the constant rise in home values will either slow down or home values will begin to decline.  We’ll see what happens in 2020.  It’s an election year so that will play a huge role in what takes place. 

In this video, Chris Gonzales with Mother & Son Real Estate talks about the current market.  The activity that we’re seeing and why it’s a market that sellers need to pay close attention too…